Physical resources and capabilities
1. Changi Airport
Government and SIA had invested in the Changi Airport together. It includes facilities such as hangar, maintenance center, and catering center, those facilities can be used by SIA, but also the customers of other airline company. So those services in Changi airport are not unique for SIA. Airport service is valuable and important for SIA or other airlines company. Low unique and high valuable, then it is not SCAs.
2. Planes: SIA have 22% 747-400 aircrafts of total production in the world. These planes are greater flying range, better fuel efficiency and quieter cabin than other airline. High unique and valuable that SIA has strong ...view middle of the document...
SIA’s labor cost is the lowest among all major airlines, that not only valuable but also unique at that time. The gap between SIA and other airlines companies are not easy to cover in short time. But if other airlines make great efforts on cut down their human resource cost, they will catch up with SIA eventually since it is not too complexity, specificity and can be learn from the cumulate experience.
SIA is only one company who consecutive win the National Training Award for three years. SIA spent a lot of money in employee training program, since it believes that human is the essential factor for company successful. It also launched some program (eg. Outstanding Service on the Ground) to motivate the frontline staff. Maybe the competitors can copy the model but they can’t imitate the SIA’s culture easily. Whole training system is inseparable with SIA’s culture which is valuable and unique, also hard to imitate.
In the customer service aspect, they are the first airline to offer Dolby Headphone and in-flight entertainment system for customers, SIA also was the first airline company to provide global satellite in flight telephone service and fax service.
For the pre flying service, such as introducing internet check in service and Centralized Baggage Tracing unit system, which enabled more effective management of mishandled baggage
All of the above are distinctive competencies of SIA at that time. But most of them are not strong sustainable, the only advantage for the SIA is just they are the first one to introduce these kind of service, but all other airline companies can provide the same kind of service in the future after they realize that customers want these kind of service.
We think that only the Centralized information system, as Centralized Baggage Tracing unit is sustainable distinctive competency of SIA, because it is more complex and mostly suitable for airline industry.
During the 1999-2000 year, SIA received over sixty awards worldwide in a range of categories. It was named Asia’s Best Managed...